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You might try the pixastic JavaScript library, but to my knowledge, it isn't designed to work on selected areas of an image.

The only way I can think of to achieve the effect you describe would be to fetch the Google Maps image somehow and process it with a server-side script that would blur the selected area and overlay the text content.

In any case, my guess is that you're going to be best off avoiding the use of an <iframe> at all costs.